Minister of Natural Resources, Vickram Bharrat, has confirmed that Government will next Tuesday sign a Production Sharing Agreement (PSA) with Cybele (Cybil Energy Limited) for the S7 shallow-water block.
He explained that most of the shallow-water blocks awarded in the recent bid round measure an average of 2,000 square kilometres, including the S7 block. “We would have awarded the block to Cybele, so whoever is their partner, we are signing with Cybele,” the Minister noted.
Bharrat stressed that the contract terms remain the same as those agreed with TotalEnergies, and that the PSA is already published online for public access. The Government had delayed the signing of these new contracts to ensure that one standard PSA would be used for all companies operating in shallow water.
“So we have a shallow water PSA and not different PSAs for different companies,” he stated, adding that all companies have now agreed to the unified terms.
The fiscal regime also remains unchanged. “The 10% tax, 10% royalty, 50/50, 65% cost recovery, that will not change in any agreement, as we would have made public,” Bharrat said.
He added that only a few administrative issues were negotiated by the team ahead of finalisation. During the launch event next Tuesday at 9:00 a.m., technical officers will provide further details on the agreement and its specific features.
“It is the same PSA that is online… that we sign with Total is the same PSA that we will sign with Cybele next week,” the Minister reiterated.
